Why bridging finance is surging in WA’s property market

New data and broker insights point to a sharp uplift in bridging loan usage across the state, with borrowers increasingly turning to short-term funding to remain competitive in one of the country’s fastest-moving property markets.

Mortgage Choice data shows bridging loans in Western Australia rose by 38 per cent as a share of submissions in the six months to February 2026 – more than double the national growth rate of 16 per cent.

Similarly, bridging loan specialist lender Bridgit recorded over 100 per cent month-on-month growth in Western Australia from January to February, with volumes also materially above November and December.

Aaron Bassin, CEO and co-founder of Bridgit, said Western Australia is currently leading national demand.

“We’re seeing high demand for our solution nationally, but WA is clearly one of the strongest markets right now,” Bassin said.

“That reflects the realities of the WA property market. Strong population growth, tight supply and high rental yields attracting investors are creating fast-selling conditions and rising prices.”

‘You won’t get a look in’

Western Australian brokers said bridging finance has shifted from a niche strategy to a mainstream tool, particularly for owner-occupiers looking to upgrade.

Eli Hayes, owner and manager of Mortgage Choice in Albany, told Broker Daily that the change has been unmistakable.

“We’ve definitely seen an increase in inquiries and applications for bridging loans,” she said.

“In WA’s very hot market, both regional and metro, adding a subject-to-sale condition puts you at a huge disadvantage – you simply won’t get a look in on competitive properties.”

Hayes added that bridging finance is giving buyers the confidence and speed they need to secure a new home.

“Bridging gives buyers the edge to secure their next home quickly; we’re finding that by the time the new lender registers the mortgage on the original property, it’s often discharged shortly after anyway, so it has real benefits in a strong market like this,” Hayes said.

Ben O’Keefe, mortgage broker at Strategic Mortgages Perth, said the majority of his clients are now upsizers navigating the same challenge.

He said: “Bridging allows them to make offers subject to finance, not sale, which is helping get their offers accepted.”

He added that it also removes the pressure of co-ordinating simultaneous settlements and allows sellers to run stronger sales campaigns.

“It means they are not rushed into selling their home, which can result in a better campaign and sale price.”

Short-term solution with long-term consequences

Another key trend emerging in Western Australia is the shortening duration of bridging loans, driven by the rapid pace of property sales. Brokers said this is creating a self-reinforcing cycle: the faster a property sells, the lower the cost of bridging, increasing its appeal. In turn, greater use of bridging finance is helping accelerate transaction speeds even further.

Robert Flynn, director and mortgage consultant at Vorteil Financial in Perth, said bridging is now being used far more frequently – but for much shorter periods.

“A few years ago, I could probably count the number of bridging loans I’d done on one hand – now it’s a fairly regular feature,” Flynn said.

“If your offer is subject to sale, there’s going to be 10 others that aren’t, so bridging provides that avenue.

“What’s interesting is most of these bridging loans aren’t lasting long – I don’t think we’ve had one that’s been in place for longer than a month. We had one in place for just six days. At that point, who cares about the interest rate?”

This has helped shift perceptions around cost.

“Everyone thinks it’s expensive, but if the loan is only in place for a very short period, it becomes far less of a concern,” Flynn added.

Equity growth unlocking more borrowers

Rising property values are also making bridging finance more accessible.

As of the end of February 2026, Perth’s house prices have outpaced every other capital city, increasing by 2.3 per cent over the month, 6.8 per cent over the quarter, and 22 per cent over the year. The median house value now sits at $989,000.

Flynn noted that increased equity levels, particularly among downsizers and long-term owners, are improving serviceability outcomes under conservative lending models.

“Banks typically shave 10–15 per cent off the expected sale price, so historically some deals didn’t stack up on paper,” he said.

“But with property values much higher now, more clients have the equity needed to make bridging viable.”

Population growth meets record-low supply

Western Australia’s market conditions have created an ideal environment for bridging finance.

The state is now Australia’s fastest-growing, with population growth sitting at 2.3 per cent per annum, adding roughly 54,000 new residents each year, with around 80 per cent settling in Perth. At the same time, interstate migration has surged, rising 37 per cent in 2025 – the highest level in more than a decade.

Yet supply has failed to keep pace. Active listings in Perth fell to just 1,881 properties at the end of December 2025, a record low and down more than 57 per cent year on year.

As a result, properties are selling at speed, with a median of just nine days on market and some suburbs changing hands in as little as three days.

Bassin added: “In this kind of market, buyers want to move quickly to secure a property and can’t afford to delay by having to sell their existing property first.

“Bridging finance allows them to unlock their existing equity to transact quickly and with greater certainty.”

[Related: How WA’s new stamp duty concessions could unlock housing supply]